Most bought stocks by mutual funds in October: Bajaj Auto, TechM, HeroMoto

MFs were net buyers of 63 per cent stocks in the Nifty Midcap 100 stocks, of which the highest MoM was seen in L&T Finance Holdings , Vodafone Idea, Syngene Intl, PB Fintech, Aurobindo Pharma

Mutual funds were net buyers of 80 per cent stocks in the Nifty 50, of which the highest month-on-month net buying in October 2023 was observed in Bajaj Auto, Adani Enterprises, Tech Mahindra, Hindalco and Hero Moto, according to an analysis by Motilal Oswal.

Mutual funds were net buyers of 63 per cent stocks in the Nifty Midcap 100 stocks, of which the highest MoM was seen in L&T Finance Holdings , Vodafone Idea, Syngene Intl, PB Fintech, and Aurobindo Pharma.

In the small-cap space, mutual funds were net buyers of 64 per cent of stocks in the Nifty Small-cap 100 index. The highest month-on-month net buying in Oct’23 was witnessed in Laxmi Organic, Mahanagar Gas, BSE, MRPL, and Amber Enterprises.

Maximum MoM decline seen in financial stocks

In Oct’23, the stocks that saw the maximum MoM increase in value were Kotak Mahindra Bank, Interglobe Aviation, HCL Tech, Bajaj Auto, SBI Life Insurance, Solar Industries, Persistent Systems, CreditAccess Grameen, Coal India, and Power Grid Corp.

 Stocks that witnessed the maximum MoM decline in value were Infosys, HDFC Bank, ICICI Bank, SBI, Axis Bank, Sun Pharma, ITC, Bajaj Finance, M&M, and L&T.

Sector allocation

In October 2023, mutual funds showed an interest in Automobiles, Consumer, Utilities, and Insurance, leading to a monthly rise in their weights. Conversely, Banks (Private & PSU), Technology, Capital Goods, and Metals saw a month-on-month moderation in weights.

Private Banks (18.7%) was the top sector holding for mutual funds in Oct’23, followed by Technology (9.4%), Autos (8.4%), Capital Goods (7.2%), and Healthcare (6.8%).

Real Estate, Insurance, Cement, Textiles, and Utilities were the only sectors to witness an increase in value month-on-month. 

The top sectors where MF ownership vis-à-vis the BSE 200 are at least 1% lower: Consumer (20 funds under-owned), Oil & Gas (19 funds underowned), Private Banks (15 funds under-owned), Utilities (14 funds under-owned), and Technology (12 funds under-owned).

 The top sectors where MF ownership vis-à-vis the BSE 200 are at least 1% higher: Healthcare (15 funds over-owned), Capital Goods (15 funds overowned), NBFCs (13 funds over-owned), Automobiles (12 funds over-owned), and Chemicals (11 funds over-owned) .

All top 25 schemes close lower MoM

Among the top 25 schemes by AUM, the following reported the highest MoM decrease: Mirae Asset Emerging Bluechip Fund (-3.6% MoM change in NAV), Mirae Asset Tax Saver Fund (-3.4% MoM), Mirae Asset Large Cap Fund (-3.4% MoM), Kotak Flexi Cap Fund (-3.4% MoM), and UTI-Flexi Cap Fund (-3.2% MoM)